What is the real rate of return for large cap stocks

Assignment Help Financial Management

Reference no: EM13848232

Large cap stocks had the nominal rates of return of 11.89%. The rate of inflation during the last year was 2.57 percent. What is the real rate of return for large cap stocks. Round the answer to two decimal places in percentage form. show work.

Reference no: EM13848232

Questions Cloud

What is the bioethical issue or decision at hand : Bioethical Analysis Worksheet Scenario: Chang and Fang Yin are a married couple living in China. They have decided to have a child and Fang Yin is at a stage in her pregnancy where the sex of the child can be determined. What is the bioethical iss..

Capital structure-maximzes stock price-shareholder value : As with all financial decisions, a firm should try to set a capital structure that maximzes the stock price, or shareholder value. This is called the optimal capital strucutre; it is also the debt-equity mix that: Review the list and indentify which ..

Determine the payback period for project : Financial Appraisals Inc. is considering purchasing new software. Determine the payback period (in years) for this project. Software initial cost is $56,000 and would yield after-tax cash flows of $14,000 the first year, $16,000 the second year, $19,..

Develop a spreadsheet model : Develop a spreadsheet model, and use it to find the project's NPV, IRR, and payback.

What is the real rate of return for large cap stocks : Large cap stocks had the nominal rates of return of 11.89%. The rate of inflation during the last year was 2.57 percent. What is the real rate of return for large cap stocks.

What is the yield on municipal bond with coupon rate : What is the yield on a $1,000,000 municipal bond with a coupon rate of 8%, paying interest annually, versus the yield of a $1,000,000 corporate bond with a coupon rate of 10% paying interest annually? Assume that you are in the 25% tax bracket.

Marginal tax-investor be indifferent between these two bonds : Debt issued by Southeastern Corporation currently yields 12%. A municipal bond of equal risk currently yields 8%. At what marginal tax rate would an investor be indifferent between these two bonds?

Which version of windows 7 should be purchased : Two computers have recently failed and require replacement. Which version of Windows 7 should be purchased with the new computers?

Manufacturing process at regular intervals : Samples of n=4 items each are taken from a manufacturing process at regular intervals. A quality characteristic is measured, and x-bar and R values are calculated for each sample. After 25 samples, we have:

User Account

All Pages